Am Radio Slumping

While the competition gets hotter in FM radio, its AM counterpart both nationally and in South Florida has been dramatically losing audience share.

In just four years, AM stations in Broward and Palm Beach counties have seen their audience share fall from a high of 33 percent to about 25 percent, according to figures compiled by the News and Sun-Sentinel Co. marketing research department.

Only two AM stations -- WIOD-AM 610 with its popular music/talk format and WNWS-AM 790 with its news/talk format -- break into the top 10 in audience share in the two-county area during any part of the listening day, be it morning drive time, mid-morning, evening or late night, according to the survey.

The Arbitron radio rating service classifies Hollywood, Fort Lauderdale and Miami as one South Florida market, and Palm Beach County as another. This presents a problem, however, since AM radio is very much alive for thousands of Dade County Hispanics who attentively tune in Spanish language broadcasting stations each day. Using Arbitron`s figures for Dade/Broward gives AM radio a higher share than the News and Sun-Sentinel survey figures.

Nevertheless, AM radio has been struggling to find a niche for years.

``It`s true that the AM listening audience has been declining in recent years, dating back to 1978, when FM radio`s audience first surpassed AM`s,`` said David Parnigoni, the National Association of Broadcasters` (NAB) senior vice president for radio. ``But I think it`s bottomed out and is beginning to turn around.``

Many listeners have been drawn to FM radio stations by their capability to broadcast in stereo, and analysts have held out hope that a similar capacity for AM radio would increase its market share.

But the Federal Communications Commission has designated two, non- compatible formats for AM stereo receivers, and has largely -- as with Beta vs. VHS videotape recorders -- left it to the marketplace to decide which will prevail.

When the NAB`s 63rd annual convention convenes in Las Vegas April 14, the future of AM radio will be among the 100 seminars on the agenda.

Also scheduled is a demonstration of seven ``new generation`` AM stereo radio receivers by such manufacturers as Sony, Marantz, Panasonic, Pioneer and Jensen.

Faced with FM radio`s superior sound quality and stereo transmission, AM radio stations have increasingly emphasized non-musical formats such as talk, news or sports, or a combination of the three, Parnigoni said.

The demographics of AM radio`s listening audience have also been criticized as being too old, with a high share of the 35- to 64-year-old market, and not enough of the ideal 18- to 49-year-old market.

AM radio is far from dead, however, Parnigoni emphasized. ``In Boston and Hartford, Conn., the AM stations are the big powerhouses that dominate. And in New York City, AM stations consistently are in the top 10,`` he pointed out.

AM`s future doesn`t necessarily lie with stereo broadcasting, Parnigoni said. ``AM stero would help, but I don`t think it is the answer. It`s just an enhancement -- like adding color to a picture.``

The answer lies in programming -- with more specialized formats to fit the listener`s needs, he said.

``There`s talk under way to expand the AM dial from 1650 kilohertz to 1750 kilohertz. If this happens, there will be an even greater need for specialized programming -- for FM radio, too,`` Parnigoni said.